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November CPI at 2.7% YoY, in line with estimates

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GameStop ( GME ) rises after reporting Q3 profit

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Broadcom ( AVGO ) gains after report Apple ( AAPL ) working on AI chip with

co

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Indexes up: Dow 0.08%, S&P 500 up 0.90%, Nasdaq up 1.74%

(Updates after Nasdaq hits 20,000 points)

By Purvi Agarwal and Shashwat Chauhan

Dec 11 (Reuters) - The Nasdaq crossed 20,000 points for

the first time on Wednesday, as tech stocks rallied after the

latest inflation report raised hopes of a rate cut by the U.S.

Federal Reserve later this month.

A Labor Department report showed U.S. consumer prices

increased by the most in seven months in November, though

broadly in line with market expectations.

"Nasdaq is rallying on the prospect of a rate cut next

week and has room to move higher," said Peter Cardillo, chief

market economist at Spartan Capital Securities.

At 12:16 p.m. ET, the Dow Jones Industrial Average

rose 36.70 points, or 0.08%, to 44,284.53, the S&P 500

gained 54.47 points, or 0.90%, to 6,089.12 and the Nasdaq

Composite gained 342.10 points, or 1.74%, to 20,028.02.

Bets on the Fed cutting 25 basis points next week jumped to

more than 94%, compared with an 86% chance before the data,

according to CME's FedWatch Tool. Bets had risen following

Friday's employment report, which showed an uptick in

unemployment alongside a surge in job growth.

Also expected this week is a producer price reading on

Thursday.

Yields on U.S. government bonds were choppy ahead of an

auction of 10-year notes worth $39 billion later in

the day. It was last at 4.2419%.

Six of the 11 major S&P sub-sectors were trading higher,

with consumer discretionary rising 1.8%, while

communication services added 2.8%.

Most megacap and growth stocks were higher, with Alphabet

up 4.6% and Tesla gaining 3.1%. Both hit

all-time highs on an intraday basis.

"Despite the rise (in tech stocks), valuations have not

gotten too out of hand, so provided earnings (growth) can

continue in the next year, I don't see why the (tech) rally

can't continue," said Tom Bruce, macro investment strategist,

Tanglewood Total Wealth Management.

On the flip side, the blue-chip Dow was weighed down by a

5.1% decline in UnitedHealth ( UNH ).

Among other top movers, GameStop ( GME ) gained 9.9% after

the videogame retailer reported a profit for the third quarter

on cost-saving efforts.

Broadcom ( AVGO ) jumped 5.3% following a report that Apple ( AAPL )

is working with the company to develop its first server

chip specially designed for artificial intelligence.

Macy's shed 5.7% after the department-store bellwether

cut its annual profit forecast as persistent weakness in demand

clouded its expectations for the holiday shopping season.

Match Group ( MTCH ) dipped 6.1% as it said it would report

fourth-quarter revenue below its previous forecast due to a

larger-than-anticipated impact from currency exchange rates.

Advancing issues outnumbered decliners by a 1.73-to-1 ratio

on the NYSE and by a 1.33-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and six new

lows, while the Nasdaq Composite recorded 88 new highs and 87

new lows.

(Reporting by Purvi Agarwal and Shashwat Chauhan in Bengaluru;

Editing by Anil D'Silva and Maju Samuel)